Fortis Reports C$474 Million in Profit and Launches C$32.2 Billion Capital Plan
Key Facts
Fortis reported net earnings of C$474 million, or C$0.92 per share, for the third quarter ended September 30, on November 3, 2026, compared with C$0.81 per share a year earlier. At the same time, the company unveiled a C$32.2 billion capital plan for 2027–2031. The new plan is C$3.4 billion higher than its predecessor and supports compound annual growth of 7.5% in rate base. Fortis also extended its annual dividend growth guidance of 4% to 6% through 2031. The company linked the quarter’s results to long-term investment in its regulated utilities and growth in its rate base.
On an adjusted basis, earnings per share improved to C$0.92 from C$0.87 in the same quarter of 2025. On a reported basis, earnings per share were C$0.92, compared with C$0.81 a year earlier. Fortis attributed the improvement in adjusted earnings mainly to rate base growth across its utilities. Higher earnings at UNS Energy also contributed, driven by growth in retail electricity sales and the timing of operating costs. These gains were partly offset by higher costs related to rate base assets not yet reflected in customer rates.
Fortis raised its 2026 capital expenditure forecast to about C$6.0 billion from the previously expected C$5.6 billion. The company said the increase was tied to accelerated investment in electricity transmission associated with MISO projects and the Tilbury Phase 1B project. Capital expenditures had totaled C$4.2 billion through the end of September. The updated forecast puts spending for the rest of the year on a higher path than the company had previously expected. At mid-2026, the company expects its rate base to reach C$45.3 billion; this is a midyear estimate, not an actual year-end result.
The increase in the new five-year plan is concentrated in transmission investments regulated by the U.S. Federal Energy Regulatory Commission and tied to ITC’s MISO LRTP tranche 2.1 project portfolio. Other plan drivers include system reliability and interconnection improvements, development of the Tilbury site and customer growth. In October 2026, ITC was awarded a competitive project in Iowa worth US$1 billion, half a billion dollars of which was included in the new plan. These projects support the projected increase in rate base from C$45.3 billion at mid-2026 to C$55.8 billion at mid-2029. Fortis expects the rate base to reach C$63.9 billion at mid-2031.
Fortis said the plan will be financed mainly through cash flows from operations and debt at its regulated utilities, with equity support relying primarily on its dividend reinvestment plan. The company intends to file a new base prospectus and relaunch its at-the-market equity issuance program in early 2027 to provide financing flexibility. Beyond the plan, the company sees additional growth opportunities in the Tilbury Phase 2 liquefied natural gas expansion project, with a potential investment of C$2 billion to C$4 billion depending on market uptake and the final investment decision, with most spending expected after 2031. ITC also estimates additional spending of US$2.9 billion to US$3.4 billion on MISO LRTP tranche 2.1 projects outside the five-year plan. These potential expenditures remain separate from the announced value of the 2027–2031 plan.
On dividends, Fortis announced that it had extended its annual dividend growth guidance of 4% to 6% through 2031, alongside an increase in its fourth-quarter dividend, according to the company’s statement. The guidance extension is part of a plan targeting rate base growth over the next five years. The company held a conference call and webcast to discuss its quarterly results and new outlook on November 3, 2026, at 8:30 a.m. Eastern Time. As background to the new plan, the previous 2026–2030 plan totaled about C$28.8 billion and supported expected rate base growth of 7.0%. The current plan is C$3.4 billion higher and raises the targeted rate base growth rate to 7.5%.